Reverse charging mechanism
This query is : Resolved
12 October 2012
Advocate's Services, Security services, Works contract services, Cab services etc., are part of reverse charging of Service Tax.Is it Mandatory that the service recipient should pay the Service Tax Amount?
Or is it acceptable if the Service Provider charges ST and remits to the department in case of the above mentioned Services?. I have this Doubt because a Company does is not paying ST saying that the service provider has already charged ST therefore not paying.
Or is it acceptable if the Service Provider charges ST and remits to the department in case of the above mentioned Services?. I have this Doubt because a Company does is not paying ST saying that the service provider has already charged ST therefore not paying.
12 October 2012
No as per Section 68(2) of the Finance Act, 1994 read with 2(1)(d)(i) of the Service Tax Rules, 1994, the service recipeient has made made person liable to pay tax and accordingly the same is required to be paid by service recipeint only.
Payment of service tax by service provider does not exonerate service recipeint from payment of service tax under RCM.
Hope this would settle the issue....
Payment of service tax by service provider does not exonerate service recipeint from payment of service tax under RCM.
Hope this would settle the issue....
12 October 2012
Doesn't it amount to double payment of Service Tax to the department?, and, any clarification in this regard is provided?
12 October 2012
Yes it would amount to... But service recipeint should not pay the service tax amount even if charged by service provider. If paid the same may be recovered from him... For which refund application can be filed by service provider if deposited with govt.
Hope this would suffice...
Hope this would suffice...
12 October 2012
Yes it solved my query, But i have one more query, to avoid such instance, the company (service recipient) has not paid the ST. For Audit purpose, what can be advised the Company?(Service Recipient)
12 October 2012
Only advise is to pay service tax and recover from service provider if paid to him...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Exiting partner in partnership firm in gst portal
- FEMA regulation Act. for inward remitance
- Difff in ais receipts and gst turnover
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
